The Marketing Strategies of Bed Bath & Beyond
Bed Bath Beyond currently has a strong retail position, especially because its primary buyer marketing center considers its customers’ needs. They continue opening more locations and have publicly publicized spectacular openings to spread the word. The rivalry is still very fierce. But, the company has finally made some very astute decisions, particularly concerning promotion. To achieve this goal, Bed Bath Beyond compromises by offering their customers affordable prices, introducing fresh products into the marketplace, and providing them with a solid base.
OBJECTIVE FOR MARKETING
An Ansoff Matrix is a specialist tool that identifies the potential development systems for a company as part of a larger essential planning exercise. According to Muddler (2010), Ansoff’s Matrix is a tool that allows a corporation to select its product and market development strategy. It has been used by advertising to identify important demands for a long time. The four main classes of the Matrix—Product Development, Diversification, Market Development, and Market Penetration—are each given a logical framework within which exhibiting destinations can be developed.
Igor Ansoff, a professor of methodology, developed the Ansoff Matrix in the 1960s. The Ansoff Matrix’s main premise is that by combining existing and new products and markets, an organization or association can clearly understand the development approaches that might be used. In Ansoff (1965),
An organization infiltrates a market by bringing its current products there. Organizations use this approach to generate sales without deviating from the initial item advertising process (Ansoff, 1957). BBBY has been working to produce more online discounts in light of the weight of store movement and fierce competition from Amazon. Additionally, efforts are paying off, as the growth of web-based businesses reached 20% in August 2016. (Hellman, 2016)
Growing new products is a crucial decision for a company. Product development occurs when a company creates new products to satisfy a comparable market (Lynch, 2003). BBBY, assisted by various sellers straight to customer (VDC) initiatives, has been expanding into new item classes, from vanities and lighting to outdoor and wellness items, with the ultimate goal of promoting “wallet share” (Hellman, 2016).
When a business adopts the market development model, it extends outside its current customer base and focuses on attracting new customers for its current products. This approach typically involves promoting current products in new global markets (Christensen et al., 2005). BBBY acknowledges that increasing the emphasis on promoting initiatives is one way to combat the current activity unease. BBBY had planned to alter its attempt to sell anything this way by prescribing specific items and even entire outline conspiracies that integrate various items into one’s kitchen or bathroom. BBBY had discreetly acquired One Kings Lane, a growing online clothing company that frequently uses a “blaze deal” design that is only available temporarily and sells hip, creator products (mostly furniture and home aesthetic design) at a significant discount (Hellman, 2016)
The diversification strategy is obvious since when a company grows, it moves out of its current products and markets and into new ones. Remember that expansion may occur in unrelated and related zones (Macmillan et al., 2000). The little buy the BABY decision that BBBY made should be the center of convergence of the organization’s extension ideas over the coming years, as BBBY admits, even though a general unit improvement will likely be direct (Hellman, 2016).
The new product will be developed under the Bed Bath and Beyond brand’s line extension, especially in the health and beauty sector, based on the variety of items offered by the company and following the product development approach outlined in the Ansoff Matrix. A new product in the BBBY Health and Beauty extension named Portable Bedding for Patients was to be manufactured as BBBY had already produced a range of bedding for its consumer, targeting the adult demographic as its user. This is due to the increased demand from family members who wish to purchase items for their ill or bedridden relatives who need portable bedding to move around easily. Also, many consumers complain that it’s difficult to get patient bedding from furniture stores other than the extremely limited medical supply firms.
SEGMENTING THE MARKET
The market division, which divides the market into a few groups and other segments, is considered an essential element of modern advertising (Kotler and Armstrong, 2005). These market segmentations can be divided into four categories: geographic, psychographic, psychographic-demographic, and behavioural segmentation.
PRODUCT MARKETING MIX STRATEGIES
According to marketing science, the term “product” refers to a variety of elements of a product, including its quality, brand, packaging, labelling, features, benefits, and physical components. It also refers to concepts and services related to the product (Armstrong and Kotler, 2005).
According to marketing science, the term “item” encompasses not just the product itself but also the services, ideas, and other product characteristics, such as its quality, brand, packaging and design, features, and benefits (Armstrong and Kotler, 2005).
Style, design, and features of the product
The process of manufacturing a product begins with product design. According to Kotler and Keller (2009), product design suggests the item’s shape and appearance, whereas practical outline implies how the item will function. A visually appealing bundle strategy will entice customers to try the product, boosting sales. The following is the new strategy for portable bedding for patients: –
Shaped like a rectangle and with rollers for both sides of the bedding, the bed is reminiscent of a hospital bed. There will be a small change at the bed’s edge where the hospital-style edge will be replaced with a luxurious edge. It will improve the Feel of its user, especially the sick, who experiences the same level of luxury bedding as usual.
Size: The average bed comes in various sizes, from single to queen.
For ease of movement, one or two patients may share a bed.
WIDTH – Two sizes will weigh differently; a single bed size is made up of 15 kilograms, while the queen size weighs 30 kg.
Features and benefits: The bed is created specifically from cotton, which offers its user a high level of comfort and has a built-in antibacterial effect. Moreover, it is dust mite and allergy free, preventing the growth of microorganisms while using the bed.
Figure 1.2 illustrates a BBBY portable bedding product with a comparable design for patient
A brand is defined as a name, term, sign, image, outline, or combination of these that identifies the maker or retailer of a good or service (Kotler and Armstrong, 2015). Consumers consider a brand to be an essential component of an item, and branding can raise the value of a customer’s purchase. The following parts of the new BBBY Portable Bedding for Patients were connected: –
Logo: The “Care Rest” phrase is added to the logo of BBBY Portable Bedding for Patients in a larger letter size.
WORDING – Adding a few words with different colours, such as “Care & Comfort.”
Colour: Utilizing the primary colours of BBBY, which are blue and white, along with soft colors to draw in more customers.
Figure 1.3 shows an illustration of a BBBY portable bedding for the patient’s brand logo.
The primary factor determining the buyer’s choice is price. According to (Schindler, 2011), pricing is the total amount charged for the good or service, including any guarantees or ensures, delivery, discounts, services, or other items that are a part of the condition of the offer and are not purchased separately. For this express, a rivalry-based pricing technique is used to determine the cost of BBBY Portable Bedding for Patients.
Price Based on Competition
Taking into account the methodology, costs, and market offerings of competitors when determining prices. The buyer will base their decision to acquire an item on the competitor’s price for comparable goods (Kotler and Keller, 2009).
Portable Bedding for Patients will cost $2,699 each, $290 less than rival 1’s price, as BBBY decided to price the new product depending on the level of competition in the market (Invacare). This demonstrates that BBBY is more reasonably priced for the target market to acquire than competition 1. (Invacare). Although BBBY set the pricing for the new product at $300 more than rival 2 (Medline), BBBY hopes that its well-established reputation in the furniture sector will encourage more consumers to choose the BBBY brand.
In order for a marketing strategy to be effective, the target market must be reached through effective communication (Hollensen, 2005). According to Armstrong and Kotler (2015), advertising mix correspondences included three significant improvements, which were as follows:
Any form of compensated non-personal introduction and promotion of ideas, goods, or services with acknowledged backing constitutes advertising. It is the most effective way to draw customers’ attention to their products.
Short-term incentives to encourage the purchase or offer of a good or service are known as sales promotions. Everybody has used this tried-and-true advertising strategy to promote their product.
Guerrilla marketing is a sneaky approach to spreading the word about a company’s name, goods, or services. Guerrilla marketing is a low-budget or nearly free method of advertising that, when used appropriately, can increase earnings.
(Distribution Channel) PLACE
An organization of dependent associations that help make goods or services available for use or utilization by the consumer or business client is referred to as a distribution or advertising channel. (2015) Kotler and Armstrong. The goal of BBBY Portable Bedding for Patients was to spread through intense distribution, which involved stocking the products in as many BBBY stores as were reasonable under the conditions (Armstrong and Kotler, 2014).
BBBY Portable Bedding for Patients was intended to be positioned in the following locations employing intensive distribution:
BBBY Stores make the product more accessible, convenient, and saleable by making it appropriate for demonstration in hospitals and medical facilities.
RECOMMENDATION FOR BUDGET
Three major categories will each receive a certain amount of funding for the budget:
Direct selling (2%).
Promotion of sales. (17%)
In order to market BBBY Portable Bedding for Patients, BBBY will primarily employ three advertising mediums: billboards, television and radio, and social media. A suggested spending limit for each instrument is given below: –
Guerrilla marketing was the method BBBY opted to use, which resulted in the least amount of money being spent on their budget planning and advertising methods. The price of the guerrilla tools strategy is listed below: –
Promotion of Sales
BBBY picked a few locations, including hospitals, shopping centres, health fairs, and furniture expos, to increase sales promotion. The price of the sales marketing plan is as follows: –
Preparing for Budget Estimate
The estimated $187,800 cost for promoting BBBY Portable Bedding for Patients will be divided into three areas, with 81% of the budget for advertising, 2% for direct marketing, and 17% for sales promotion.
Based on the aforementioned table, BBBY had created a backup plan in the event that the marketing tactics employed failed to increase sales of this new product development. BBBY has to adopt a new strategy in order to maintain its market viability, customers, and competitive advantage (Axson, 2013). When it comes to the threat that new product development poses to rivals, a new target market group should be taken into account (Markgraf, 2017).
In summary, this study showed how Bed Bath Beyond (BBBY) is now using marketing planning to promote the product offering of Portable Bedding for Patients of BBBY Health and Beauty Division. Additionally, it describes the role that new product development plays in the furniture industry and suggests a marketing strategy for the extension of the product line in order to boost sales and give the company a crucial competitive edge. Igor Ansoff’s proposed Ansoff Matrix has made it possible for a firm to develop strategic business options.
Also, this grid will provide businesses with a situation or strategy for the next products and market initiatives. But, the business cannot rely on the earlier-proposed marketing planning, and in every case, a backup plan should be created. In order to create income and remain competitive in their field, every company should have a marketing strategy.
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The Marketing Strategies of Bed Bath & Beyond
Introduction Brief description of Bed Bath & Beyond 100 words
Analysis Summary and analysis of its marketing strategies 300 words
Solution Whether its marketing strategies are successful or not?
Solutions for better marketing.
300 words Justification Describe reasons why you selected the solution.
200 words Summary What do you learn from its marketing strategies?
100 words References Kreitner, R. & Kinicki, A. (2013).
Organizational behaviour (10th ed.). New York, NY: McGraw-Hill Publishing Company. (Example). Follow APA format. At least three to five references.
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